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Interesting information on Fox Sports 1 and 2 and a possible impact

Here is the Sports Business Daily article on the negotiations to get Fox Sports 1 and 2 distributed...

Sources: Distributors Hold The Line On Fox Sports 1 Sub Fee

By John Ourand, Staff Writer

Published August 15, 2013
The frenzied rush that saw several of the countryís biggest distributors agree to carry FS1 at launch occurred only after Fox surprisingly backed off its asking price of $0.80 per subscriber per month, according to multiple high-level sources. Cablevision, Cox, DirecTV, Dish Network and Time Warner Cable agreed to carry the new, heavily promoted all-sports channel, but only at the same rate they were paying for the previous channel, Speed, which cost $0.23 per subscriber per month. Fox told the distributors that it would convert Speed into FS1 and allow distributors with existing Speed deals to carry it at Speedís rate, or at least close to it, according to multiple sources with direct knowledge of the talks.

Fox had guaranteed that they would have 90 million subs at launch on Saturday and they were cutting it very close in that they did not have distribution agreements in place with DirecTV, Dish, Time Warner, and Bright House prior to this morning. The big sticking point was the per sub rate. Fox wanted between $0.80 and $0.88 per sub. FS1 is replacing Speed Channel and was charging $0.23 for Speed. The operators have clearly held their ground with Fox and have made them pay for promising full national distribution before they actually had it. In order to get the distribution, it appears that they had to settle for not raising the per sub rate that they were getting from Speed Channel and this will be a huge blow to their revenue projections.

Now if an ACC Network can get 90 million subs at 20 cents per sub that will be $18 million per month 216 million per year...or 14.4 million per year for 15 schools.

Of course this would mean that the ACC Network would have to have national distribution with the top operators in the country...Comcast, Direct, Dish, Time Warner, Cox, Charter, Cablevision, and Bright House. It would also mean that they would have to command a price of 20 cents per sub...which is not guaranteed.

Here is the Sports Business Daily article on the negotiations to get Fox Sports 1 and 2 distributed...

Sources: Distributors Hold The Line On Fox Sports 1 Sub Fee

By John Ourand, Staff Writer

Published August 15, 2013
The frenzied rush that saw several of the country’s biggest distributors agree to carry FS1 at launch occurred only after Fox surprisingly backed off its asking price of $0.80 per subscriber per month, according to multiple high-level sources. Cablevision, Cox, DirecTV, Dish Network and Time Warner Cable agreed to carry the new, heavily promoted all-sports channel, but only at the same rate they were paying for the previous channel, Speed, which cost $0.23 per subscriber per month. Fox told the distributors that it would convert Speed into FS1 and allow distributors with existing Speed deals to carry it at Speed’s rate, or at least close to it, according to multiple sources with direct knowledge of the talks.

Fox had guaranteed that they would have 90 million subs at launch on Saturday and they were cutting it very close in that they did not have distribution agreements in place with DirecTV, Dish, Time Warner, and Bright House prior to this morning. The big sticking point was the per sub rate. Fox wanted between $0.80 and $0.88 per sub. FS1 is replacing Speed Channel and was charging $0.23 for Speed. The operators have clearly held their ground with Fox and have made them pay for promising full national distribution before they actually had it. In order to get the distribution, it appears that they had to settle for not raising the per sub rate that they were getting from Speed Channel and this will be a huge blow to their revenue projections.

Now if an ACC Network can get 90 million subs at 20 cents per sub that will be $18 million per month 216 million per year...or 14.4 million per year for 15 schools.

Of course this would mean that the ACC Network would have to have national distribution with the top operators in the country...Comcast, Direct, Dish, Time Warner, Cox, Charter, Cablevision, and Bright House. It would also mean that they would have to command a price of 20 cents per sub...which is not guaranteed.

After today the score is Cable/Dish Operators 1 - Networks 0.

I wholeheartedly believe that if a new ACC Network were launched the cable systems in the ACC footprint would be willing to pay closer to the $0.80 per subscriber FSN1 was asking.

*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*.*. *.*.*.*.*.*

I just wish we would STOP with the zone blocking read option crap and line up in the I, put a hat on a hat and run the tailback behind the fullback through a designated gosh-danged hole. There is NO REASON why this program shouldn't be able to find 5 fat guys who can move some people out of the way and clear a lane for a back to get through!

Just a gut feel on my part but I can see an ACC network getting maybe 50 cents per sub in ACC markets and getting maybe 10 cents outside the footprint. My bet is that averages out to be somewhere in the $0.20 to $0.25 area. I also really want to see what price the SEC Network will get. That will really tell us what may happen beacuse an ACC Network will not get a better price than the SEC.

Fox Sports 1 (and Fox Sports 2) are new and unknown networks at this point, so of course there was little pressure for TV operators to carry them. But CBS just won a carriage fee battle with Time Warner Cable. If and when FS1 and FS2 have games on them that sports fans really want to see, they will be in a much better position to dictate terms to the cable/satellite companies.

"You start a conversation you can't even finish it
You're talkin' a lot, but you're not sayin' anything
When I have nothing to say, my lips are sealed
Say something once, why say it again?"
- David Byrne

Here is the Sports Business Daily article on the negotiations to get Fox Sports 1 and 2 distributed...

Sources: Distributors Hold The Line On Fox Sports 1 Sub Fee

By John Ourand, Staff Writer

Published August 15, 2013
The frenzied rush that saw several of the countryís biggest distributors agree to carry FS1 at launch occurred only after Fox surprisingly backed off its asking price of $0.80 per subscriber per month, according to multiple high-level sources. Cablevision, Cox, DirecTV, Dish Network and Time Warner Cable agreed to carry the new, heavily promoted all-sports channel, but only at the same rate they were paying for the previous channel, Speed, which cost $0.23 per subscriber per month. Fox told the distributors that it would convert Speed into FS1 and allow distributors with existing Speed deals to carry it at Speedís rate, or at least close to it, according to multiple sources with direct knowledge of the talks.

Fox had guaranteed that they would have 90 million subs at launch on Saturday and they were cutting it very close in that they did not have distribution agreements in place with DirecTV, Dish, Time Warner, and Bright House prior to this morning. The big sticking point was the per sub rate. Fox wanted between $0.80 and $0.88 per sub. FS1 is replacing Speed Channel and was charging $0.23 for Speed. The operators have clearly held their ground with Fox and have made them pay for promising full national distribution before they actually had it. In order to get the distribution, it appears that they had to settle for not raising the per sub rate that they were getting from Speed Channel and this will be a huge blow to their revenue projections.

Now if an ACC Network can get 90 million subs at 20 cents per sub that will be $18 million per month 216 million per year...or 14.4 million per year for 15 schools.

Of course this would mean that the ACC Network would have to have national distribution with the top operators in the country...Comcast, Direct, Dish, Time Warner, Cox, Charter, Cablevision, and Bright House. It would also mean that they would have to command a price of 20 cents per sub...which is not guaranteed.

After today the score is Cable/Dish Operators 1 - Networks 0.

Why would the ACC Network have national distribution? Heck I'm a Hokie and live mid way between Miami and FSU. I cannot imagine folks west of Kentucky caring much about the ACC Network.

Here is the Sports Business Daily article on the negotiations to get Fox Sports 1 and 2 distributed...

Sources: Distributors Hold The Line On Fox Sports 1 Sub Fee

By John Ourand, Staff Writer

Published August 15, 2013
The frenzied rush that saw several of the country’s biggest distributors agree to carry FS1 at launch occurred only after Fox surprisingly backed off its asking price of $0.80 per subscriber per month, according to multiple high-level sources. Cablevision, Cox, DirecTV, Dish Network and Time Warner Cable agreed to carry the new, heavily promoted all-sports channel, but only at the same rate they were paying for the previous channel, Speed, which cost $0.23 per subscriber per month. Fox told the distributors that it would convert Speed into FS1 and allow distributors with existing Speed deals to carry it at Speed’s rate, or at least close to it, according to multiple sources with direct knowledge of the talks.

Fox had guaranteed that they would have 90 million subs at launch on Saturday and they were cutting it very close in that they did not have distribution agreements in place with DirecTV, Dish, Time Warner, and Bright House prior to this morning. The big sticking point was the per sub rate. Fox wanted between $0.80 and $0.88 per sub. FS1 is replacing Speed Channel and was charging $0.23 for Speed. The operators have clearly held their ground with Fox and have made them pay for promising full national distribution before they actually had it. In order to get the distribution, it appears that they had to settle for not raising the per sub rate that they were getting from Speed Channel and this will be a huge blow to their revenue projections.

Now if an ACC Network can get 90 million subs at 20 cents per sub that will be $18 million per month 216 million per year...or 14.4 million per year for 15 schools.

Of course this would mean that the ACC Network would have to have national distribution with the top operators in the country...Comcast, Direct, Dish, Time Warner, Cox, Charter, Cablevision, and Bright House. It would also mean that they would have to command a price of 20 cents per sub...which is not guaranteed.

After today the score is Cable/Dish Operators 1 - Networks 0.

Since you are in the industry, I'm curious if you think the "ACC Footprint Areas" where the ACC might get higher subscription fees would mirror what Raycom is experiencing trying to get the regional sports networks to carry the ACC package?

If the two will mirror each other, this means we're shut out of Philadelphia, which I think will be an important market to have. And picking up Texas like we've talked about would add a lot to the footprint too.

knowing the ACC, a possible rate structure will probably be an incentive based subscription, where the acc may charge maybe only .15 per subscriber and if viewship increases by xx percentage, the cable company gets x percentage of the rate of the increase and if it jumps past certain growth the cable distributor gets it all

I think that as things are currently constituted, we would be excluded from the Philadelphia market. An ACC Network has zero chance at national distribution without Notre Dame and something west of the Mississippi (like Texas). I think if Texas comes in and maybe some other Big XII friends, then you may have enough to get that national play.

An ACC Network will not work unless you can get Comcast, Time Warner, Cox and Cablevision to the table on the Cable side and Direct and Dish on the satellite side. Direct and Dish will only play if they see national potential...which is why Direct does not carry the Pac-12 Network but does carry the Big 10 Network.

To better answer your question, with 15 members in the league next year, I think that the ACC can be in every major market east of the Mississippi except for Philadelphia. This will also include Chicago thanks to Notre Dame and the markets in Kentucky and Indiana thanks to Louisville and Notre Dame.